560.AL/2–1848: Telegram
The Secretary of State to the Embassy in the United Kingdom
543. For USDel on tripartite discussions on Germany. Despite strong representations by Dept and efforts by USDel ITO Conf Habana, UK, France and other countries at Habana refuse accept contractual commitment to apply, on reciprocal basis most-favored-nation treatment to trade of occupied areas during occupation period. (Clayton has informed Douglas of problem.) Reasons for UK and French positions have not been explained. Dept considers opposition unjustifiable and believes further efforts should be made to obtain m-f-n treatment for occupied areas. If Del perceives no objections, pls take this question up at earliest opportunity with UK and Fr with view ascertaining reasons for their position and persuading them accept m-f-n commitment on reciprocal basis with occupied areas.
If attitudes UK and Fr can be changed, would be desirable to work out protocol or other form of commitment for such reciprocal m-f-n treatment for occupied areas at forthcoming meeting of contracting parties of General Agreement on Tariffs and Trade at Habana. Brit and Fr should be urged to support US in obtaining such agreement at GATT meeting and to instruct their delegations at Habana accordingly soon as possible. Since GATT meeting being planned to convene Feb 23 and finish by Feb 29, prompt action is essential.
UK, Fr and other ERP countries at Habana are being advised that US will expect provision according reciprocal m-f-n treatment for [Page 864] occupied areas to be included in bilateral ERP agreements. This point may also be emphasized in your discussions.
Pls repeat to Habana any communications re foregoing to Dept. Sent London as 5543, repeated Habana as 2377 and Paris as 511.